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Rank 1: Guest
themundo
Posts: 2
Registered: ‎18-06-2012

Early Termination Fee

Hello everyone,

 

I'm new so please be gentle!

 

I've been a Vodafone customer for approx 10 years and I'm cosidering leaving,  I've never had any problems regarding service or costs and have always been happy being with Vodafone.

 

My pay monthly contract is due to expire on the 20th of September (early upgrade date 1st August).  My problem is my current handset (NOKIA X6) is playing up and having had it for two years I'm not surprised.

 

I've seen a few deals online for a handset and contract that I'm intrested in and would like to know how I find out any costs/terms involved in cancelling my contract early.

 

Regards

 

themundo

 

Message 1 of 10 (12,344 Views)
Rank 32: Scholar I
SynthFG
Posts: 2,727
Registered: ‎24-11-2009

Re: Early Termination Fee

No months remaining (until min term expires) * monthly tarrif (not inc VAT) with a 2% rebate


Note I do not work for voda, Nor now am I a customer
My advice comes from experience and my opinions are my own
Message 2 of 10 (12,335 Views)
Rank 6: Frequent Poster
horatio_nelson
Posts: 119
Registered: ‎03-05-2011

Re: Early Termination Fee

One question about the above formula - it arose in another thread but I can't find it/not sure it was resolved.

Should the amount representing "monthly tarrif" be the actual amount paid if one a promotion priceplan (e.g. if offered a £30/mo plan for £20/mo as an incentive to upgrade), or as the headline rate regardless of what is actually paid?
Message 3 of 10 (12,322 Views)
Rank 32: Scholar I
SynthFG
Posts: 2,727
Registered: ‎24-11-2009

Re: Early Termination Fee

You will be charged at the non discounted rate

The view taken is that you were offered the promotional rate as an incentive to stay with voda for the duration as a special offer, if you choose to leave the case for this special offer no longer applies


Note I do not work for voda, Nor now am I a customer
My advice comes from experience and my opinions are my own
Message 4 of 10 (12,317 Views)
Rank 6: Frequent Poster
horatio_nelson
Posts: 119
Registered: ‎03-05-2011

Re: Early Termination Fee

I can see the commercial rationale there, but I'm still convinced that there is a good arguable case that it effectively functions like a penalty clause in such circumstances.
Message 5 of 10 (12,285 Views)
Tech Team
Ben_H
Posts: 7,784
Registered: ‎08-06-2009

Re: Early Termination Fee

Hi folks,

 

themundo - If you'd like a hand checking your Early Termination Fee and options around your potential future upgrade, feel free to email my team directly using the instructions I've sent via Private Message. You can find your PM inbox here. :smileywink:

 

 

horatio_nelson - It is clearly stated in the terms and conditions provided at the point of sale that an ETF is calculated as the number of months remaining multiplied by your core price plan rate before VAT, discounts and any added services (such as Insurance, extra bundles etc). As mentioned previously, agreed during a deal discounts are under the proviso that a customer sees their agreed contract commitment out to the end. :smileyhappy:

 

Cheers, Ben

I’m part of the Vodafone Tech Team and here to help. As this is a public forum, we can only answer non account specific queries. Please note, we’re unable to reply to private messages.


If you see a helpful post, please click the 'Thanks' button to let the author know. If a post solves your query, please click the ‘This is the Answer?’ button. This helps others find helpful answers in the community too.

Message 6 of 10 (12,267 Views)
Rank 6: Frequent Poster
horatio_nelson
Posts: 119
Registered: ‎03-05-2011

Re: Early Termination Fee

Thanks Ben. I have a few boring points - the further you read down, the more boring/irrelevant they become (sorry):

1. I am eligible for an upgrade. I just called the upgrades team on 191 and was given the option of a 12 month sim-only offer at £15.50/month. I double checked whether this was the "core price plan" rate or a promotional rate. I was told that it was ordinarily £20.50, so this was a discounted rate. I speficically raised the question of what would happen if I wanted to terminate early (e.g. if I had to move to another country on business half way through). I was reassured that my ETF would be calculated based on the £15.50 price, rather than £20.50...

2. If the ETF does not take into account either "discounts and any added services (such as Insurance, extra bundles etc), I can see something that's a bit paradoxical.

For example, let's say you have customer A and customer B. Customer A negotiates a package which is normally £40/mo, but gets a reduction so that he only pays £25/mo. Customer B, decides to get a £25/mo core package, but at the same time wants to increase his minutes and text allowance by buying some bundles, so he is actually paying £40 a month (3x£5 bundles).

If both wish to terminate at any given time, Customer A would have his ETF worked out with £40/mo as the core price plan (not taking into account the discount), but Customer B would have his ETF worked out with £25/mo as the core price plan (not taking into account the bundles). Pretty strange.

3. Are the terms and conditions provided at the point of sale different to the standard pay monthly or pay monthly airtime conditions provided on the Vodafone website at these addresses: http://www.vodafone.co.uk/vodafone-uk/about-this-site/terms-and-conditions/products-and-services/pay... and http://www.vodafone.co.uk/consumer/groups/vodafoneukonline/documents/assets/vftst160597.pdf ?

There is nothing the those specific T&Cs linked to above about the ETF. Do details of the ETF appear in any other T&Cs on the Vodafone website (http://www.vodafone.co.uk/vodafone-uk/about-this-site/terms-and-conditions/index.htm)?

Sorry if this is a bit of a specific question. But I'd have thought that if there is a general formula used to work out the ETF, despite every individual user's ETF being worked out by inputting different amounts, the general formula would feature in the general T&Cs somewhere?

4. What I meant about a penalty clause is more an ethereal legal argument. Whether the ETF is clear in the contract or not is irrelevant in terms of a legal analysis - where a fixed sum penalty for non-performance/breach is not a genuine pre-estimate of loss, it could in theory be a penalty clause and thus void. Here, I imagine loss would be worked out in relation to sums Vodafone would have received had a customer carried out the contract by paying monthly (at a discounted rate) for the entire duration. Working our the ETF without applying a discounted rate is therefore not a genuine pre-estimate of loss.

Also, such a term could in theory fall foul of the Unfair Terms in Consumer Contracts Regulations 1999. Schedule 2(1) of the regs provides a list of the types of terms which may (but won't necessarily) be considered unfair. One of these example terms (2(1)(e)) is a term which has "the object or effect of requring any consumer who fails to fulfil his obligation to pay a disproportionately high sum in compensation". So, if a customer ends up with core plan of 24mo duracion at £40/mo and he is given a discount, resulting in him paying £15/mo, but for one reason or another (e.g. bankruptcy, leaves country) he is unable to fulfil his obligation and ends the contract with 20 months remaining, he will be charged £800, which contrasts the £300 he would have had to pay over the remainder of the contract had he fulfilled it. That is effectively a £500 fee, or an increase of 167% on the balance which would have otherwise been due over the remaining 20 months. Arguably a "disproportionately high sum in compensation" to Vodafone...
Message 7 of 10 (12,245 Views)
Moderator (Retired)
Moderator (Retired)
Lee
Posts: 19,284
Registered: ‎27-10-2008

Re: Early Termination Fee

Hi there horatio_nelson,

 

Thanks for coming back to us.

 

I'll address each point in turn:

 

1) I'm afraid you've been mis-advised there. Please accept my apologies for this. As Ben has already advised, the discount is offered at the point of sale as part of the rentention guidelines. The caveat is that the customer must fulfil the agreement. If this is not adhered to then we may remove the offer.

 

2) This is correct. Each deal is agreed on it's merit and the two price plans may have differing allowances.

 

3) The terms and conditions are exactly the same. The agreement that is made over the phone is a verbal agreement and each agent has to go through a number of checks prior to completing any order. A script must be read by the agent giving advice regarding any inclusive allowances, equipment supplied and any discounts or add-ons that are included as part of that deal.

 

4) Any discounts that are applied to your agreement are only valid whilst that agreement is live. Once termination occurs all rights to any discounts are lost.

 

I trust this helps.

 

Cheers,

 

Lee

Message 8 of 10 (12,211 Views)
Rank 6: Frequent Poster
horatio_nelson
Posts: 119
Registered: ‎03-05-2011

Re: Early Termination Fee

Thanks Lee.

A useful respone but slightly badly timed! I actually had a call from upgrades today (before reading this message) and decided to go ahead on a £15.50/mo sim only plan. I asked the same point again (to a different advisor than the one I spoke to earlier this week) and was told that my ETF would be worked out with the amount of £15.50, not £20.50. (The specific contract here is 600 mins, u/l texts, 1GB, u/l voda2voda mis).

I only took up this offer because (i) my current iPhone still works and there aren't any other Apple phones really worth upgrading to; (ii) I specifically told that advisor I was likely to terminate when a new iPhone comes out (even if there are 9 months left of my contract, it would work out at £139, based on the £15.50/mo figure).

So as you'll appreciate the ETF is actually quite an important term in my contract (as opposed to someone maybe taking out a £41/mo contract with a new handset and no real intention of terminating at any point).

If you can confirm that I've been misadvised again, then this is quiet a big deal and I will likely have to cancel within the 7 day cooling off period. I wouldn't go as far to say as these are fraudulent misrepresentations being made at the point of sale, but they are certainly misrepresentations even if the upgrades team honestly believe that their advice is correct.

This is quite worrying that two advisors I have asked have led me down the same lines. Also, the person I spoke to today didn't tell me that this £15.50/mo amount was a promotional amount until I pushed and found out that the regular price for new customers is actually £20.50/mo. As expressed above, I just put it down to a lack of awareness rather than sharp practice or active deceit, but it's very disappointing to be told something by people actually selling these upgrade contracts which is likely to cost me more than was made out.
Message 9 of 10 (12,182 Views)
Moderator (Retired)
AndyD
Posts: 20,669
Registered: ‎25-11-2010

Re: Early Termination Fee

Hi horatio_nelson,

 

I've noticed you've recently posted on a new thread here, advising you've now reverted to your old contract but have a query regarding the reversion.

 

I've logged the new post to be looked at by the team and as soon as an advisor is available, they'll be along to help.

 

Thanks

 

Andy

Moderator

Message 10 of 10 (12,170 Views)